Home buyers should consider real estate auctions as a viable means of purchasing a home. Some may be thinking distressed foreclosures are all they can find at an auction, but private firms typically hold more auctions. These firms auction everything from builder closeouts to homes from individual homeowners that want a quick sale. There are four important things potential buyers should know about real estate auctions before bidding.

Auctions have evolved from traditional auction houses to fast-paced digital marketplaces. Today, anyone can bid on everything from classic cars to digital assets, often without leaving home. There are many common auction types, each with its own unique rules and strategies.

When you’re buying or selling items at auction, your main focus is likely on values and prices. As a seller, you’ll want to maximize profit, and as a buyer, you’ll want to score a great deal. To make informed decisions, it’s essential to understand the difference between auction value and market value (and what influences them).